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To what extent was Pronghorn Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute
To what extent was Pronghorn Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) Assume that the balance sheet that was prepared by the company showed the following amounts: (Round ratios to 2 decimal place, e.g. 4.56.) Dr. Cr. Cash $41,340 Accounts receivable 39,800 Inventory 66,370 Accounts payable $46,680 Other current liabilities 15,002 Per Balance Sheet After Adjustment Working capital $ $ Current ratio to 1 to 1
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